Tag: DeFi lending
UK Tax Agency Released New Guidelines Around DeFi
Her Majesty’s Revenue and Customs (HMRC), the U.K.’s tax agency announced a controversial set of recommendations on Wednesday that could harm Decentralized Finance (DeFi) innovation. Ian Taylor, executive director of CryptoUK said: “HMRC treats crypto assets as property for tax purposes. However, this is inconsistent with the approach currently being adopted by Government and other regulatory bodies in the UK.” The updated ruling focuses on how digital assets are treated in the UK for DeFi lending and staking, and whether the returns or incentives from these activities are taxed or not. Due to the cutting-edge nature of DeFi, tax specialists were confused about how the existing regulations apply to these services. HMRC stated: “The lending/staking of tokens through DeFi is a constantly evolving area, so it is not possible to set out all the circumstances in which a lender/liquidity provider earns a return from their activities and the nature of that return. Instead, some guiding principles are set out.” “HMRC has updated its guidance on the treatment of crypto and digital assets, specifically for DeFi lending and staking in the UK, significantly altering their classification and treatment.” According to the guidance, returns from staking and lending DeFi assets will not be treated as ‘interest’, because digital assets aren’t considered currencies in the UK, but rather property for tax reasons. However, the guidance suggests that in many circumstances, this technique will signal that beneficial ownership of those tokens has been moved to the platform, which could cause tax problems for stakeholders. This would imply that they were sold for tax purposes and would be subject to Capital Gains Tax. According to Ian Taylor, executive director of CryptoUK, these new regulations will impose an unnecessary burden on crypto investors that is not imposed on stock market investors when lending shares: “HMRC treats crypto assets as property for tax purposes. However, this is inconsistent with the approach currently being adopted by Government and other regulatory bodies in the UK, including the Treasury and the FCA.” According to Taylor, the new regulations impose undue reporting obligations for consumers and cause tax compliance complexity because investors have to report hundreds or even thousands of transactions. “This is out of step with the Government’s stated aim for the UK to be open and attractive as a destination for investment and innovation post Brexit,” he said. Matt Hancock, the former Secretary of State for Health and Social Care and now a Member of Parliament (MP) in the United Kingdom, encouraged the House of Commons to pass a progressive crypto policy to make England the home of cryptocurrency last week. In November last year, HMRC issued regulations about the imposition of a digital services tax on crypto exchanges operating in the United Kingdom.
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UK tax agency cracks down on rules around DeFi lending and staking
“HMRC treats crypto assets as property for tax purposes. However, this is inconsistent with the approach currently being adopted by Government and other regulatory bodies in the UK," said the executive director of CryptoUK Ian Taylor
Crypto Credit Scoring Protocol CreDA Partners with FilDA to offer Leveraged and Low-Collateral Lending
New York, NY, Jan 14, 2022 - (ACN Newswire) - CreDA (Credit DeFi Alliance), the leading decentralized credit rating service and FilDA, the largest ever DeFi lending platform on HECO with a peak TVL of over US$2 billion, have partnered to offer exclusive lending rates to CreDA users. Users who mint their Crypto Credit Score as a Credit NFT (cNFT) will have access to leveraged lending and low or no-collateral loans directly within the CreDA platform.
The partnership comes only a few months after CreDA officially launched its platform and demonstrates the value Crypto Credit Scores can have by removing many of the barriers in traditional banking and the DeFi space. According to Bank of America, over 200 million users are now part of the digital asset universe, yet very few financial institutions would provide them with a loan. Even within the DeFi space, lenders operate in an over-collateralized manner with typical loan-to-value (LTV) ratios below 50 per cent.
Modeled after traditional consumer credit agencies, CreDA introduces the concept of personal credit scores into the $250 billion decentralized finance (DeFi) ecosystem.
Leveraging existing blockchain infrastructure, CreDA provides a trust architecture for the relatively young and volatile MetaFi ecosystem that includes emerging areas such as DeFi, GameFi and SocialFi.
"While our core business is focused on supporting the overall ecosystem through trusted and verifiable credit scoring, ours is a new concept for this space. By partnering with FilDA we hope to demonstrate the value and viability of the CreDA Credit Score to reward both users and lending institutions by brokering more transparent and trusted relationships," explains Fakhul Miah, incoming Chief Executive Officer. "We like to say that we're finally giving credit where credit is due."
How to get leveraged, low or no-collateral loans
CreDA allows users to link their wallets, mint a credit NFT (cNFT) and borrow at industry-defying rates, all from within the same platform.
CreDA provides on-chain credit ratings using the CreDA Oracle, which employs artificial intelligence (AI) to examine the user's assets, historical transactions and behavior in the crypto space across multiple blockchains. This data is used to calculate a credit score that is then minted into a secure non-fungible token called a credit NFT (cNFT). The cNFT enables the user to unlock preferential rates and incentives.
The FilDA partnership lets users access leveraged lending and low or even no-collateral loans based on the users Crypto Credit Score. The score represents a user's ability and willingness to pay back loans, de-risking Filda's exposure and rewarding the user for good on-chain behavior.
One major focus for CreDA is ensuring a safe and secure experience for users. To do this, data is fully protected, secured by industry leading, W3C compliant Decentralized Identifications (DIDs), which are linked to a user's cNFT. CreDA recently underwent a strict security audit with leading blockchain security group, CertiK.
About CreDA
Built on the Ethereum Layer 2 network, CreDA operates on Arbitrum with developers aiming to launch across multiple chains including, BSC (Binance Smart Chain), Ethereum mainnet and ESC (Elastos Sidechain) in Q1 of 2022 with more to follow throughout the year.
CreDA's Credit Oracle has already retrieved the data of billions of on-chain activities related to more than 90 million addresses across the largest blockchains. This large initial data pool helps to build a reliable and trusted credit model that will continue improving as more data is collected from additional chains and users who connect and mint their credit scores. The CreDA protocol is designed to compute a user's Crypto Credit Score while protecting their identity through the use of a DID, which does away with KYC (know your customer) checks.
The aim for the CreDA protocol is to eventually combine traditional (off-chain) and blockchain (on-chain) data to compute a holistic user credit score that allows for more flexibility and access between people's virtual and 'real world' lives. This will become even more relevant as technology advances and society continues to embrace virtual spaces, such as the Metaverse.
"As Benjamin Franklin once said, 'If you want to know the value of money, try borrowing some!' said Cassie Zhang, Chief Operating Officer during CreDA's launch in late 2021.
"The DeFi landscape is quickly evolving, but there is still one factor that is missing -- credibility. The CreDA protocol enables DeFi and other Web 3 platforms to model risk profiles across their user base and offer personalized rates and services, making them more competitive versus industry peers."
Social Links
Twitter: https://twitter.com/credafinance
LinkedIn: https://www.linkedin.com/company/creda-finance
Discord: https://discord.com/invite/eSvTm6a6kb
Media Contact
CreDA (Credit DeFi Alliance)
E-mail: press@creda.app
Website: www.creda.app
SOURCE: CreDA
Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.com
What You Need to Know about Ontology in 2022
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As of April 2020, Moonstake has been supporting ONT staking via strategic partnership with the development team behind Ontology blockchain. Since then, Moonstake has hosted a number of campaigns that promoted awareness of the Ontology ecosystem as well as adoption of ONT staking to global users. Moonstake's partner Binarystar has also been providing great support in marketing efforts with event organization and local community development.
In 2021, Ontology worked on bringing trust, privacy, and security to Web3 through providing decentralized identity (DID) and data solutions. Most notably, the team spent much of last year on the development of Ontology EVM (Ethereum virtual machine), which is scheduled for public release in Q1 2022. The EVM aims to establish seamless interoperability between Ontology and the Ethereum platform, and offer an inclusive experience to developers and users, a crucial step in the realization of the Ontology Multi-VM. Additionally, the team also focused on facilitating smooth user access and experience with DeFi, GameFi, NFTs, and general decentralized applications. In this article, we will be interviewing our partner at Ontology about what is in store for the Ontology ecosystem and its user community in 2022.
Q1 Which 2021 achievements are you the most proud of?
In 2021, we brought our existing products in line with our broader vision for Web3. We launched the Ontology EVM TestNet, in preparation for the 2022 MainNet launch. ONT ID surpassed 1.5 million users in September, reflecting a major endorsement for decentralized identity, and ONT.ID website has been upgraded to provide full decentralized identity solutions to users.
Ontology's global growth has accelerated following our partnerships with bloXmove, ROCKI, ZAICO, and AP.LLC, as well as ONT's listing on Japanese regulated exchanges like Decurret and Huobi Japan.
We've also launched a web-based ONTO Wallet, ONTO Web and a decentralized airdrop distribution tool called ONTO Anydrop, making Web3 easily accessible and providing convenience for our ecosystem partners. Ontology's DeFi lending platform, Wing Finance, also launched on multiple chains including Ethereum, OKExChain, and BSC, together with the support of Any Pool.
As usual, the last year has been full of incredible achievements. We are excited to drive this success further with the help of our ecosystem partners and our global community.
Q2 What measures are you going to take in 2022 to further increase adoption of Ontology?
The MainNet launch of the Ontology EVM will take place during the first quarter of 2022. As part of our multi-VM, it will allow for the deployment of many more dApps on the Ontology blockchain. This approach will not only bring more development, but also will encourage more users to the Ontology blockchain to experience the benefits of a fast, secure, low cost public chain.
2022 is also a year where Web3, and the Metaverse, establishes a greater presence in everyday life for more and more people. Ontology's wallet solution, ONTO Wallet, already has over 750k users, and will provide a gateway into Web3 for many more. As we continue to develop the DID and data solutions that we are known for, which are crucial to Web3's success, more users will be encouraged to create their DID and easily access the latest iteration of the internet.
Q3 What can users expect from Ontology in 2022?
As we laid out in our latest roadmap ( https://medium.com/ontologynetwork/ontology-2022-roadmap-a0036cd72f1b ), 2022 is about building the infrastructure and delivering the tools to make Web3 a success. This means greater interoperability, to make cross chain experiences as seamless as possible. It means more collaboration, as chains bring a varying range of benefits to users. At Ontology, we will continue to develop solutions for DID and data, making sure users are onboarded with ease and experience secure, self-sovereign control over their digital existence.
In short, 2022 means more development, more control, more opportunity and an easy access point into Web3 and the Metaverse with Ontology. We look forward to our continued relationship with partners such as Moonstake, and welcome developers, harbingers, builders and new ecosystem partners to join us in building Web3 together.
Moonstake is proud to be strategic partners of Ontology. We will continue to maintain strong support for the ever growing and developing Ontology ecosystem and hope to bring even more great value to ONT and crypto users worldwide in 2022 to help accelerate adoption of the Ontology and Moonstake ecosystems together.
About Moonstake
As a world-leading staking service provider, Moonstake develops and operates decentralized wallet services for enterprises and end users.
Our full-scale staking business started in August 2020. With the support of users all over the world, our total staking assets has risen to 1.8 billion dollars. In June 2021, we ranked third among 15,000 staking providers globally.
So far, we have expanded our business and ecosystem through about 30 strategic partnerships, including major blockchains such as Emurgo which is a constituent organization of Cardano, TRON, and NEO. In May 2021, we became a wholly owned subsidiary of the listed company "OIO Holdings Limited" on the Singapore Stock Exchange and we are working to further expand Moonstake's business and improve our credibility. https://www.moonstake.io/
About Ontology
Ontology, the project bringing trust, privacy, and security to Web3 through decentralized identity and data solutions. Ontology is building the infrastructure to provide trusted access to Web3, allowing individuals and enterprises to rest assured that through regulatory compliant digital identity solutions, users and their privacy come first. https://ont.io/
Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.comAs we begin the new year 2022, Moonstake and our strategic coin partners have much exciting news and programs in store for you as our platforms scale and evolve. To welcome our user community into the exciting new year, we're creating a series of articles in collaboration with our strategic partners on what you need to know about our partner coins in the year 2022, this time with Ontology.
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